UK chancellor's Spring Statement expected to make waves amidst struggling economy

Chancellor Rachel Reeves will deliver the 2025 Spring Statement in the House of Commons on Wednesday morning.

The statement updates Parliament and the nation on the economy, public finances and progress against the Government’s economic objectives, set against the backdrop of a struggling economy.

The statement is expected to heavily emphasise the UK’s increased spending on defence amidst what Reeves has called a “quickly changing world”.

The chancellor will announce a further £2.2bn funding increase for defence from April – a significant step towards a 2.5% GDP spend on defence.

The money will be invested in advanced technologies, including directed energy weapons which can hit a £1 coin from 1km away and take down drones from up to 5km away.

It will also be used to provide better homes for military families by refurbishing the defence estate and funding upgrades to infrastructure at His Majesty’s Naval Base Portsmouth.

However, there are concerns that public spending could be sacrificed upon the altar of national defence.

Amidst these concerns, Scottish finance secretary Shona Robison previously warned that these types of cuts could impact on budgets in Scotland.

Robison raised her concerns despite chief secretary to the Treasury Darren Jones insisting that the UK will not “blindly cut spending”.

Robison insisted however that the “failed approach of austerity must be rejected”, arguing that “vital funding for public services and infrastructure” must be prioritised.

The Spring Statement will be made just over a week after the UK Government unveiled a sweeping package of benefit reforms aimed at making savings of £5bn by 2030.

However, Reeves is expected to promise to deliver “security for working people” and a “decade of national renewal”, as she shares how the Government will put advanced weaponry in the hands of British troops, and “kickstart economic growth”.

The chancellor will deliver the Spring Statement after Prime Minister’s Questions on Wednesday at approximately 12.30pm.